Red, White and Blue arepartnerssharing profits in theratio of 40:35 25. On December 31, 2016, they...

 

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Red, White and Blue arepartnerssharing profits in theratio of 40:35 25. On December 31, 2016, they agree to liquidate. A statement of financial position prepared on this date follows Assets Liabilities & Equity Cash P2,000 46,000 Liabilities White, loan Blue, loan Red, capital White, capital Blue, capital Total Liabilities & Equity P6,000 5,000 2,500 14,450 12,550 7,500 P48.000 Other Assets Total Assets PAE.000 The results of liquid ation are summarized bedow. Cash withheld at End of Month for Estimated Future Assets Cash Liquidation Epenses P 500 Realizations Jamaary February March Book Valne P12,000 7,000 15,000 12,000 Realized P10,500 6,000 10,000 4,000 750 600 400 Expense P2,500 1,250 500 April All cash available, excpt the amount withheld future expenses, is distributed at the end of each month. Instruction: 1. Prepare a statement of partnership liquidation with supporting schedule of safe payments. 2. Prepare a cash distribution program with supporting schedule of payments. Red, White and Blue arepartnerssharing profits in theratio of 40:35 25. On December 31, 2016, they agree to liquidate. A statement of financial position prepared on this date follows Assets Liabilities & Equity Cash P2,000 46,000 Liabilities White, loan Blue, loan Red, capital White, capital Blue, capital Total Liabilities & Equity P6,000 5,000 2,500 14,450 12,550 7,500 P48.000 Other Assets Total Assets PAE.000 The results of liquid ation are summarized bedow. Cash withheld at End of Month for Estimated Future Assets Cash Liquidation Epenses P 500 Realizations Jamaary February March Book Valne P12,000 7,000 15,000 12,000 Realized P10,500 6,000 10,000 4,000 750 600 400 Expense P2,500 1,250 500 April All cash available, excpt the amount withheld future expenses, is distributed at the end of each month. Instruction: 1. Prepare a statement of partnership liquidation with supporting schedule of safe payments. 2. Prepare a cash distribution program with supporting schedule of payments.

Answer rating: 100% (QA)

Cash distribution Schedule Liabilities White loan Blue loan Red capital White capital Blue capital T... View the full answer